Baron Funds released its second-quarter 2025 investor letter for the Baron Real Estate Income Fund, showing a 0.23% decrease for Institutional Shares compared to a 1.46% decline for the MSCI US REIT Index. Since inception in 2017, the Fund has achieved a cumulative return of 87.02%, exceeding the REIT Index’s 35.45% return.

In the investor letter, Baron Real Estate Income Fund highlighted Blackstone Mortgage Trust, Inc. (NYSE:BXMT) as a stock pick. The one-month return for BXMT was -5.22%, with shares gaining 10.47% over the last 52 weeks. On August 8, 2025, BXMT stock closed at $18.88 per share, with a market capitalization of $3.239 billion.

Baron Real Estate Income Fund expressed confidence in Blackstone Mortgage Trust, Inc. (NYSE:BXMT) due to positive meetings with the management team. They continue to acquire shares in the commercial mortgage REIT, citing benefits like sponsorship by Blackstone Inc. and a strong balance sheet. Future shareholder letters will detail the Fund’s investment in BXMT.

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is not among the 30 Most Popular Stocks Among Hedge Funds, but 24 hedge fund portfolios held it at the end of the first quarter. While acknowledging its potential, some AI stocks offer greater upside potential and less downside risk. For an undervalued AI stock with growth potential, check out the free report on the best short-term AI stock.

Read more at Yahoo Finance: Here’s What Will Boost Blackstone Mortgage Trust (BXMT)?